First Quarter Ended Report September 30, 2016 (Un - audited) FIRST UDL MODARABA. Managed By: UDL Modaraba Management (Pvt) Limited

Transcription

1 First Quarter Ended Report 0 September 30, 2016 (Un - audited) FIRST UDL MODARABA Managed By: UDL Modaraba Management (Pvt) Limited

2 Corporate Information MODARABA MANAGEMENT UDL Modaraba Management (Private ) Limited COMPANY Board of Directors Majid Hasan Chairman ( Non Executive Director) Ather Naqi Chief Executive Officer Shuja Malik Executive Director S.M.Nasir Raza Non Executive Director A.Rahim Suriya Non Executive Director Company Secretary & CFO Syed Aamir Hussain Audit Committee S.M.Nasir Raza Chairman Majid Hasan Member A.Rahim Suriya Member Human Resource & Remuneration Committee Auditors Bankers Registrar Shariah Advisor Legal Advisor Tax Advisor A.Rahim Suriya S.M.Nasir Raza Shuja Malik Avais Hyder Liaquat Nauman & Co. Chartered Accountants Habib Metropolitan Bank Limited Al Baraka bank Habib Bank Limited Silk Bank Limited (Islamic Banking) Dubai Islamic Bank Limited Chairman Member Member Share Registrar Department Central Depository Company of Pakistan Ltd. CDC House, Shahra -e-faisal, Karachi Mufti Abdul Qadir Mohsin Tayebaly & Co. 2nd Floor Dime Centre,BC-4,Block -9, Kehkashan, Clifton, Karachi Ford Rhodes Sidat Hyder & Co. Chartered Accountants Progressive Plaza, Beaumont Road P.O.Box 15541, Karachi Head Office & Registered Office Business Enclave, 77-C, 1st Floor, 12th Commercial street, off: Kh-e-ittehad, DHAphase II (Ext) Karachi Factory Phone Fax E-44/45 North Western Industrial Zone, Port Qasim, Karachi info@udl.com.pk Web

3 DIRECTORS REPORT The Board of Directors of UDL Modaraba Management Private Limited takes pleasure in presenting the un-audited accounts of First UDL Modaraba for the quarter ended September 30, Review of Operations: During the quarter, income from Ijarah reduced by 20% from Rs. 5.2 million to Rs. 4.2 million. The income from investments reduced by 80% from Rs million to Rs. 2.5 million. Pharmaceutical sales went up by 732% from Rs. 2.8 million to Rs million. Despite the growth in the pharma division the modaraba posted an operating loss of Rs. 8.9 million as compared with Rs. 5.2 million in the previous corresponding quarter. Main reason for the loss was owing to decrease in realized income from investments and due to a decline in Ijarah income owing to lower kibor and also a slight reduction in the Ijarah portfolio. Pharma divisions operating expenses reduced considerably. Efforts are being made to increase the sales further to make it a profitable business segment. The Modaraba incurred a net loss of Rs. 6.5 million as compared to a net loss of Rs. 9.8 million, an improvement of 33% from the previous corresponding period of The Ijarah operations of the Modaraba are profitable and with increase in sales of the pharma division, we expect the modaraba to perform much better in future. Acknowledgement: The Board places on record its appreciation for guidance and support received from the Registrar Modarabas, Securities & Exchange Commission of Pakistan and the State Bank of Pakistan. The Directors also acknowledge with thanks the support of the certificate-holders for their continued confidence and to the members of staff for their untiring efforts and dedication. For and on behalf of the Board ---- Ather Naqi Chief Executive 27 th October 2016

4 FIRST UDL MODARABA CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, 2016 LIABILITIES AND EQUITY Certificate holders' equity Certificate capital: Authorized capital 50,000,000 (June 30, 2016: 50,000,000) modaraba certificates of Rupees 10 each Note (Un-audited) Audited September 30, June 30, ' Rupees in "000" 500, ,000 Issued, subscribed and paid up certificate capital , ,866 Statutory reserve 252, ,531 Revenue reserves Unrealized gain on re-measurement of available for sale investments 127,667 95,524 Unappropriated profit 24,591 31, , ,630 Total equity 668, ,027 Non-current liabilities Long term security deposits 30,953 33,705 Deferred liabilities 104, , , ,721 Current liabilities Current maturity of security deposits 46,874 44,254 Payable to management company 3,179 6,679 Accrued and other liabilities 46,738 48,692 96,791 99,625 Contingencies and commitments Total liabilities and equity 900, ,373 ASSETS Non-current assets Fixed assets - tangible , ,243 Fixed assets - intangible 2,014 2,089 Capital work in process 9,840 5,960 Long term investments , ,351 Long term advances and deposits , ,520 Current assets Ijarah rental receivables 4,584 3,075 Stock 22,332 21,985 Trade Debts- unsecured but considered good 8,892 12,255 Current portion of diminishing musharaka financing 1, Financial assets - Investments 9. 45,578 42,859 Advances - considered good 21,953 13,522 Prepayments and other receivables 16,546 14,267 Cash and bank balances , , , ,853 Total assets 900, ,373 The annexed notes from 1 to 15 form an integral part of these condensed interim financial information. \ 0 For UDL Modaraba Management (Private) Limited (Management Company) CHIEF EXECUTIVE Ather Naqi DIRECTOR DIRECTOR Shuja Malik Syed Nasir Raza

5 FIRST UDL MODARABA CONDENSED INTERIM PROFIT AND LOSS ACCOUNT - (Un-audited) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 Note Quarter Ended September September Rupees"000" Income from ijarah operations - net off deprecition 4,185 5,203 Income from musharaka finance 1,250 - Income from investments 2,534 12,827 Income from other sources 553 1,225 Sales - Pharma business 23,361 2,879 31,884 22,133 Cost of goods sold 18,182 9,663 Operating expenses 11 9,958 14,529 Selling & distribution 12,713 3,229 40,853 27,421 Operating loss (8,969) (5,288) Unrealised (loss)/gain on re-measurement of investment at fair value through profit or loss 2,455 (4,529) (6,515) (9,816) Less : Modaraba company's management fee - - Sales Tax on Management Fee (6,515) (9,816) Less : Workers Welfare Fund - - (Loss) for the period (6,515) (9,816) (Loss) per certificate - basic and diluted 12 (0.25) (0.37) The annexed notes from 1 to 15 form an integral part of these condensed interim financial information. For UDL Modaraba Management (Private) Limited (Management Company) CHIEF EXECUTIVE DIRECTOR DIRECTOR Ather Naqi Shuja Malik Syed Nasir Raza

6 FIRST UDL MODARABA CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME - (Un-audited) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 Quarter Ended September September Rupees"000" (Loss) for the period (6,515) (9,816) Other comprehensive income Unrealised gain on re-measurement of available for sale investments 32,143 30,202 Total comprehensive income 25,628 20,386 The annexed notes from 1 to 15 form an integral part of these condensed interim financial information. For UDL Modaraba Management (Private) Limited (Management Company) CHIEF EXECUTIVE Ather Naqi DIRECTOR DIRECTOR Shuja Malik Syed Nasir Raza

7 FIRST UDL MODARABA CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY - (Un-audited) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 Certificate Capital *Statutory Reserve Unrealized gain /(loss) on re-measurement of available for sale investment Unappropriated Profit Total Certificate Holders' Equity Rupees"000" Balance as at July 1, , ,665 51,595 69, ,730 Other comprehensive income for the year ended June 30, ,929 34,334 78,263 Profit distribution - 30 June 2015 at 25% (65,966) (65,966) Transfer to statutory reserve at 20% - 6,867 - (6,867) - Balance as at June 30, , ,531 95,524 31, ,027 Other comprehensive income for the quarter ended september 30, ,143 (6,515) 25,628 Balance as at September 30, , , ,667 24, ,655 For UDL Modaraba Management (Private) Limited (Management Company) The annexed notes from 1 to 15 form an integral part of these condensed interim financial information. CHIEF EXECUTIVE DIRECTOR DIRECTOR Ather Naqi Shuja Malik Syed Nasir Raza

8 FIRST UDL MODARABA CONDENSED INTERIM STATEMENT OF CASH FLOW - (Un-audited) FOR THE QUARTER ENDED SEPTEMBER 30, 2016 September September Rupees "000" CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period (6,515) (9,816) Adjustment of non cash/non operating items: Depreciation on owned assets 5,018 5,487 Amortization on intangible assets Amortization of assets leased out 22,495 21,279 Financial charges - 13 Loss on sale of leased assets (Gain) on sale of investment (2,534) (12,827) Profit on bank deposits (553) (1,225) Unrealised gain on re-measurement of investments at fair value through profit or loss (2,455) 4,529 22,046 18,293 15,531 8,476 Changes in working capital: (Increase) / decrease in current assets Stock (347) 2,245 Ijarah rental receivables (1,509) 1,490 Debtors 3,363 1,682 Musharika receivables - secured (750) - Advances - considered good (8,431) (919) Financial assets (2,719) (4,967) Prepayments and other receivables (2,279) (8,673) (12,672) (9,142) Increase in current liabilities Current maturity of security deposits 2,620 2,793 Payable to management company (3,500) (5,887) Accrued and other liabilities (1,954) 12, ,858 Financial charges paid - (13) - (13) Net cash flows generated/(used in) from operating activities 26 8,846 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets - leased out (4,219) (37,809) Purchase of fixed assets - own (2,629) (948) Proceeds from sale of fixed assets - own - 1,552 Profit received on bank deposits 553 1,225 Proceeds from sale of investments - net 49,943 56,670 Purchase of investments (59,436) (33,065) Net cash flows (used in)/generated from investing activities (15,787) (12,375) CASH FLOWS FROM FINANCING ACTIVITIES Long term security deposits (2,752) 3,939 Net cash flows (used in )/generated from financing activities (2,752) 3,939 Net change in cash and cash equivalents during the period (18,514) 411 Cash and cash equivalents at the beginning of the period 148,389 93,392 Cash and cash equivalents at the end of the period 129,875 93,802 The annexed notes from 1 to 15 form an integral part of these condensed interim financial information. For UDL Modaraba Management (Private) Limited (Management Company) CHIEF EXECUTIVE DIRECTOR DIRECTOR Ather Naqi Shuja Malik Syed Nasir Raza

9 FIRST UDL MODARABA SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION - (Un-audited) FOR THE QUARTER ENDED SEPTEMBER 30, LEGAL STATUS AND NATURE OF THE BUSINESS First UDL Modaraba (the Modaraba) was formed in 1991 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed there under, having its registered office at Business Enclave, 77-C, 1st Floor, 12th Commercial street, phase II, Ext. D.H.A, Karachi and is managed by UDL Modaraba Management (Private) Limited, a company incorporated in Pakistan. It is a perpetual, multipurpose and multidimensional Modaraba and is engaged in providing finance on Murabaha and Musharaka arrangements, Ijarah, commodity trading, manufacturing and trading of pharmaceutical products, and trading in listed and non-interest bearing securities. The Modaraba is listed on Pakistan Stock Exchange. 2. BASIS OF PREPARATION This financial statements comprise balance sheet, profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity and the notes forming part thereof for the Quarter ended September 30, 2016 have been prepared under the historical cost convention except for: investments - available for sale and investment - at fair value through profit or loss have been recognised at fair value. 3. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan and the requirements of Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981 and Prudential Regulations for Modarabas (hereinafter referred to as the relevant laws). Approved accounting standards comprise such International Financial Reporting Standards (IFRS) / International Accounting Standards (IAS) as notified under the provisions of the Companies Ordinance, Wherever, the requirements of relevant laws or directives issued by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements of these standards, the requirements of the relevant laws and the said directives take precedence. The comparative condensed balance sheet, presented in this condensed interim financial information, as at June 30, 2016 has been extracted from the annual audited financial statements of the Modaraba for the year ended June 30, 2016 whereas the comparative interim profit and loss account, interim statement of comprehensive income, cash flow statement and statement of changes in equity for the quarter ended period ended September 30, 2015 have been extracted from the condensed interim financial information for quarter ended period ended September 30, The SECP has issued directive (vide SRO 431 (l) / 2007) that Islamic Financial Accounting Standard 2 (IFAS-2) shall be followed in preparation of the financial statement by Companies and Modarabas while accounting for Ijarah (Lease) transactions as defined by said Standard. The Modaraba has adopted the above said Standard. 4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial report are the same as those applied in the preparation of the financial statements for the year ended June 30, 2016.

10 5. ISSUED SUBSCRIBED AND PAID-UP CERTIFICATE CAPITAL Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, Number of certificates Rupees "000" ,668,885 17,668,885 Modaraba certificates of Rs. 10 each 176, ,689 fully paid in cash 8,717,704 8,717,704 Modaraba certificates issued as 87,177 87,177 fully paid bonus certificates 26,386,589 26,386, , , CONTINGENCIES AND COMMITMENTS There is no change in the status of contingencies and commitments as disclosed in annual financial statements for the year ended June 30, FIXED ASSETS - tangible Note Un-audited Audited September 30, June 30, Rupees "000" Assets in own use 168, ,430 Assets leased out 201, , LONG TERM INVESTMENTS Available for sale 369, ,243 Listed companies , , , , Listed companies Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, No. of shares Rupees'000' Pharma & Bio Tech Searle Company Limited 219, , , ,187 Food and Personal Care Products Gillette Pakistan Limited 193, ,385 59,949 55,115 Al Shaheer Corporation 66,625 66,625 4,250 3,478 Fertilizer Engro Fertilizers Limited 54,000 54,000 3,330 3,482 Chemicals United Distributors (Pakistan) limited 962, ,569 39,465 26,952 Lotte Pakistan PTA Ltd - 181,000-1,088 Construction and material Pakcem limited 607, ,000 12,644 11,338 Textile Composite International Knitwear Limited 549, ,102 9,747 8,868 United Brands Limited 71,560 71,560 6,349 3,971 Power Generation & distribution K-Electric Ltd 654, ,500 6,028 4,872 3,377,431 3,520, , ,351

11 9. FINANCIAL ASSETS - INVESTMENTS at fair value through profit or loss Note Un-audited Audited September 30, June 30, Rupees'000' Other listed companies ,578 42,859 45,578 42, Other listed companies Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, No. of Shares / Certificates Rupees'000' Automobile Assembler Ghani automobile industries 120,000-1,172 - Oil & Gas Pakistan State Oil Company Limited - 1, Hascol Petroleum Sui Northern Gas Pipelines Limited 60, , Oil and Gas Development Co 500 5, Pakistan Refinery 10,000 10, Hi Tech Lubricant 12,000-1,006 - Personal goods Gillette Pakistan Limited 3,000 3, Treet Coporation 25,000-1,365 - Engineering Mughal Iron and steel Industries - 15,000-1,008 Pharma & Bio Tech Glaxo Smithkline Limited 6,000-1,295 - Highnoon (Lab) 2,144 3,644 1,176 2,100 IBL Health Care limited 132, ,835 21,920 24,909 - Financial Services First Fidelity Leasing Modaraba 20,630 20, Fertilizer Engro Corporation Limited 3,527 3,527 1,027 1,174 Fauji Fertilzer bin Qasim - 1, Modaraba Unicap Modaraba 36,500 36, First Equity Modaraba 167, , Chemical Nimir Resins Limited -LoR 123, Cement Bestway Cement 4,300 4,300 1, Pioneer Cement 500 4, Dewan Cement 5, Glass and Ceramics Ghani Global Glass limited 146, ,500 3,022 1,819 Industrial Metals & Mining Crescent Steel & Allied Products Limited - 6, Fixed Line Telecommunication WorldCall Telecom Limited 200, , Woollen Bannu Woollen 16,000 19,500 1,137 1,037 Real Estate Investment Dolmen City Reit 88,000 88, Miscellenous Gammon Pakistan 15,500 47, Pakistan International Bulk terminal 107, ,440 3,351 3,446 45,578 42,859

12 10 CASH AND BANK BALANCES Note Un-audited Audited September 30, June 30, Rupees'000' Cash in hand Cash at banks - PLS saving accounts , ,469 - Current accounts 13,816 13, , , , , Rate of return on these accounts range from 4% to 5.65% per annum (June 2016: 5% to 6.45%) 11 OPERATING EXPENSES Modaraba Business Pharma Business Quarter ended September 30, September 30, Rupees "000" ,375 5,991 4,583 8,538 9,958 12, (LOSS) PER CERTIFICATE (Loss) for the period (6,515) (9,816) Weighted average number of certificates 26,386,589 26,386,589 Loss per certificate - basic (0.25) (0.37) 13 FINANCIAL RISK MANAGEMENT The Modarabas' financial risk management objectives and policies are consistent with that disclosed in the financial statements as at and for the year ended June 30, DATE OF AUTHORIZATION FOR ISSUE The condensed interim financial information were approved and authorized for issue on 27th October,2016 by the Board of Directors of the Modaraba company. 15 GENERAL 15.1 The corresponding figures have been re-arranged and reclasiified where ever neccesaary for better comaprison The figures have been rounded off to the nearest thousand rupees. For UDL Modaraba Management (Private) Limited (Management Company) CHIEF EXECUTIVE DIRECTOR DIRECTOR Ather Naqi Shuja Malik Syed Nasir Raza